Upjohn Author ORCID Identifier
Series
Upjohn Institute Working Paper No. 03-51R
**Published Version**
In Journal of Human Resources 40(1): 270-279
DOI
10.17848/wp03-51R
Issue Date
August 2003
Abstract
Targeting reemployment bonus offers to unemployment insurance (UI) claimants identified as most likely to exhaust benefits is estimated to reduce benefit payments. We show that targeting bonus offers with profiling models similar to those in state Worker Profiling and Reemployment Services systems can improve cost effectiveness. Since estimated average benefit payments do not steadily decline as the eligibility screen is gradually tightened, we find that narrow targeting is not optimal. The best candidate is a low bonus amount with a long qualification period, targeted to the half of profiled claimants most likely to exhaust their UI benefit entitlement.
Sponsorship
Funding provided by Mathematica Policy Research, the W.E. Upjohn Institute for Employment Research, and the U.S. Dept. of Labor.
Subject Areas
UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Unemployment insurance; Worker profiling; WORKFORCE DEVELOPMENT; Labor exchange
Reemployment Bonuses And Profiling (wp 98-51)
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Citation
O'Leary, Christopher J., Paul T. Decker, and Stephen A. Wandner. 2003. "Cost-Effectiveness of Targeted Reemployment Bonuses." Upjohn Institute Working Paper No. 03-51R. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp03-51R